BBC Charter: renewal undermined?

Parliament will debate the future of the BBC today but shadow secretary of state for culture, media and sport Hugo Swire says the decision to delay the licence-fee announcement until the end of the year has undermined the whole charter renewal process.

"It is already clear that despite many reservations about its contents, the charter will be renewed almost on the nod. Yet this fails to recognise the very real concerns not only about the future direction of the BBC but also the actual process of charter renewal," writes Mr Swire.

The BBC wants a licence fee settlement of 2.3% above inflation, but Mr Swire has "many reservations about an "over-generous" figure.

"An excessive increase could, as many fear, spark super-inflation, damage smaller competitors in emerging markets and, ultimately, damage public support for a universal licence fee. Viewers will not take kindly to news of million-pound pensions, whopping pay increases and multi-million-pound deals for presenters," he said.

He also fears for the "independence and integrity" of the BBC, questioning whether the new Trust, replacing the BBC board of governors, is "a truly independent structure of corporate governance".

"A trust that is simply the governors in another building will not provide the sense of independence that a post-Hutton BBC requires."

And he concludes: "The danger is that while the charter renewal process will lumber on today towards its final destination, it will fail to address the issues that are so vital to provide the world-class public service broadcaster we all want to see."

During this afternoon's debate both the Tories and the Liberal Democrats are expected to demand more independent regulation of the BBC and closer scrutiny of its accounts.

Above-inflation salary rises for top BBC executives, resulting in a possible threat of strike from outraged unions, are also bound to be discussed.

But Parliament has no power over the BBC's remit - enshrined in a royal charter. So this debate will the closest MPs get to giving their approval, or otherwise.

Is the charter renewal process and accompanying licence fee negotiations really as open and accountable as the BBC and government claim? And should the BBC be gettting its 10 year charter renewal and guaranteed licence fee on these terms?